The U.S. stock market experienced a dramatic session on Thursday, November 20, 2025, as an initial rally fueled by stellar earnings from artificial intelligence (AI) chip giant Nvidia (NVDA) ultimately gave way to a sharp decline across all major indexes. Investors grappled with lingering concerns about the sustainability of the AI-driven market surge and the Federal Reserve's future interest rate policy, leading to significant volatility throughout the trading day.

Major Market Indexes See Steep Losses

After opening with considerable gains, the major U.S. stock indexes reversed course to close significantly lower. The tech-heavy Nasdaq Composite (IXIC) bore the brunt of the sell-off, sinking 2.2% to finish at 22,078.05. Similarly, the benchmark S&P 500 (SPX) fell 1.6%, closing at 6,538.76, while the blue-chip Dow Jones Industrial Average (DJIA) dropped 0.8%, shedding nearly 400 points to settle at 45,752.26. The Dow notably saw an extraordinary 1,115-point swing from its morning high to its afternoon low, underscoring the day's extreme market indecision. The broader Nasdaq 100 (NDX) also lost 2.4%, and the Russell 2000 (RUT) index of smaller companies declined 1.8% to 2,305.11.

This downturn marks a continuation of recent pressure on the markets, with the S&P 500, Dow, and Nasdaq all down 2.9%, 3%, and 3.6% respectively for the week. The primary catalysts for Thursday's reversal appear to be a reassessment by investors regarding the high valuations of AI companies and broader concerns about the outlook for higher interest rates from the Federal Reserve.

Post-Market Earnings: Nvidia Delivers, Others Report

The market's initial optimism stemmed largely from Nvidia's (NVDA) impressive third-quarter fiscal year 2026 earnings report, released after the market close on Wednesday. The chipmaker "blew past Wall Street expectations," reporting earnings per share of $1.30 on record revenue of $57 billion, significantly exceeding analyst forecasts of $1.26 per share and $54.9 billion in revenue. Revenue surged an remarkable 62% year-over-year, and CEO Jensen Huang highlighted "off the charts" demand for its new Blackwell AI platform, projecting fourth-quarter revenue of $65 billion. Despite these stellar results, Nvidia's stock, after an initial 5% jump, ultimately closed down 3.2% on Thursday, reflecting the broader market's skepticism about AI valuations.

Other companies also reported earnings around the market close on Wednesday or Thursday morning. Retail giant Walmart (WMT) saw its shares jump 6.5% after announcing better-than-expected third-quarter results and raising its fiscal 2026 outlook. Walmart reported an adjusted $0.62 per share on revenue of $179.5 billion, surpassing estimates. The company also made news by announcing its decision to switch its stock listing to Nasdaq from the New York Stock Exchange.

Additional earnings announcements included:

  • Lowe's Companies, Inc. (LOW): Shares jumped 4% after reporting strong third-quarter fiscal 2025 earnings of $3.06 per share, exceeding analyst estimates.
  • Dycom Industries, Inc. (DY): Shares surged 9.8% following a beat on third-quarter 2025 earnings, reporting $3.63 per share.
  • The TJX Companies, Inc. (TJX): Rose 0.2% after its third-quarter fiscal 2026 earnings of $1.28 per share outpaced expectations.
  • Dolby Laboratories, Inc. (DLB): Saw its shares tick up 0.1% after reporting fourth-quarter fiscal 2025 earnings of $0.99 per share, beating estimates.
  • Target (TGT): Announced its third-quarter 2025 adjusted EPS of $1.78, with digital comparable sales increasing 2.4%.
  • Soitec (Euronext Paris): The semiconductor materials company, reported its second-quarter fiscal year 2026 revenue and half-year results on November 19, highlighting strong momentum in its Edge & Cloud AI segment.

Major Stock News and Company Developments

Beyond earnings, several major public companies experienced significant stock price movements and corporate announcements. The broader tech sector, particularly those tied to AI, saw sharp reversals. Companies like AMD (AMD), Micron Technology (MU), and Oracle (ORCL) experienced declines ranging from 6.6% to 10.9%. Even tech giants like Amazon (AMZN) and Palantir Technologies (PLTR) saw their early gains evaporate, with Amazon shifting from a 2.1% gain to a 1.3% loss, and Palantir swinging from a 5.5% jump to a 4.3% loss. This volatility underscores the market's ongoing debate about whether the current AI rally is sustainable or if it represents an "AI bubble."

Upcoming Market Events and Economic Outlook

Looking ahead, investors will continue to monitor economic data and policy decisions. The recently released delayed employment data from the Bureau of Labor Statistics (BLS) showed stronger-than-expected job growth. This data is consolidating expectations that the Federal Reserve will maintain its current interest rates at the upcoming December Federal Open Market Committee (FOMC) meeting, although the mixed report has not entirely settled the debate on potential rate cuts.

While November has historically been a strong month for Wall Street, with the S&P 500, Nasdaq, and Dow all posting solid gains in October, analysts are increasingly cautioning that valuations remain stretched. Some market observers suggest that 2026 could present a more challenging environment for both stock and real estate investors. The Federal Reserve Bank of New York recently hosted an event on November 19, 2025, focusing on fostering and improving markets that channel investments into under-resourced communities, indicating a broader focus on economic equity and development. The market's current trajectory suggests continued vigilance will be key for investors navigating the end of 2025 and looking into the new year.